Firmly grounded in principles of microeconomic theory and aided by sophisticated statistical methods and powerful computers drawing on massive data bases, the theory of ‘modern finance’ has made steady progress toward achieving internal consistency and predictive power (Chew 1986). For example, it is important to recognize that to the extent management views its function as the maximization of stockholder value, all financial decisions are based on some theory of capital market pricing. So, there is no doubt that scientific management will continue to search for the most effective means in financial decision-making